, 1887-12-07
A UNIQUE MESSAGE.
President Cleveland Touches on
only One Question.
Tariff Revision is the Burden
of His Story.
Changes that Must be Made to
Avoid Disaster.

AShlNulON, DCC. uG lICol-
dents message to the congress of the
United States: You are confronted at
the threshold of your legislative duties
with a condition of the national finances,
which imperatively demands immediate
and careful consideration. The AMOUNT
of money annually received through the
operation of the present laws, from the
industries and necessities of the people,
largely exceeds the sun necessary to
meet the expenses of the government.
When we consider the theory of our in
situations guarantee to every subject the
full endowment of the fruits of his in
dustry and enterprise, with only such de
ductiun as may be his share towards the
careful and economical maintenance OF
the government which protects him, it
is plain that the exaction of more than
this is indeiensible and a culpa BILE betray-
al of fairness and justice. This wrong in
hicted upon those who bear the burden
of national taxation. like other wrongs,
multiplies a brood of evil consequences.
THE PUBLICT TREASURY,
which should only exist as u conduit, con-
veying the peoples tribute to the legiti-
mate objects of expenditure, becomes a
boarding place for money needlessly with
drawn from trade and the peoples use,
thus Gripping out national energies,
usurping our country's development,
preventing investments in productive en-
terprises, creating financial disturbance,
and inviting schemes OF public plumber.
This aOndifInn nj nnr trpaguru IL mot al.
together new, and it has more than once,
Of late, been submitted to the peoples
representatives in congress who alone sup
ply remedy, and yet the situation still
continues, with aggravated incidents,
more than ever presaglng financial con
%vulsion and widespread disaster.
IT WILL NOT DO TO GLE
this situation, because its dangers are not
now palpAbly imminent and apparent;
they exist none less certainly and the I'M
~forseen and unexpected occasion when
suddenly they will be precipited upon us.
On the Both day of June, 1885, the excess
of revenue over public expenditures after
complying with the annual requirement
of the sinking fund act, was 81. $50, 1885,
81; during the year ended June 30, 1886,
such excess amounted to $40, 405. 545. 30;
and during the year ended j une 30, 1887,
it reached the sum Of So, SCI, $40 81.
The annual contributions to the sinking
fund during the threA years above speci-
fed, amounting in the aggregate to $685..
05S, 800. ca, aud deductions from the sur
plus as stated were made by calling in for
that purpose outstanding 8 per cent
bonds Of the government. During the
six months PRIOR tn June 30, 1887, the
surplus revenue tad grown SO large by re
peated accumu!4tions, aud it was feared
the withdrawal of this great sun of
money needed by the people, would SO
effect the business of the country, that
the sum of $40, 1854, 100 of such surplus
was applied to the payment of the prlnci-
pal and interest of 3 per cent bonds still
outstanding and which were then payable
at the option Of the government.
THE PREoARIoUs CONDITION
of financial affairs among the people still
needing relief. Immediately after the 30th
day of June, 1887, the remainder of the
3 per cent bonds then outstanding,
amounting with principal and interest to
the sum of $lS,S77, 500, were called in
and applied to the sinking fund contribu
ton for the current fiscal year.
Notwithstanding these operations OF
the treasury department, representations
Of distress in business circles not only con
tinued, but increased, and absolute peril
seemed at hand. In these circumstances,
the contribution to the sinking fund for
the current fiscal year was at once com
pleted by the expenditure of $27, 6S4,
2S2.5 in the purchase Of government
bonds not yet due, bearing 4 and ~ per
cent interest, the premium pad thereon
averaging about "a cent per cent for the
former and s per cent for the latter.
IN ADDITION TO THIS,
the interest account ACQUIRING during the
current year upon the outstanding bonded
Indebtedness Of the government, was to
some extent anticipated, and banks Sc
lected as Repositories of public money,
we're permitted to somewhat increase their
deposits. While the e~xpedients thus EN-
ployed to release to the people, the mon
ey lying in the treasury, served to avert
Immediate danger, our suplus revenues
have continued to accumulate, the excess
Tor the present year amounting on the
first day of December to S55, 25S. ST.. 10
and is estimated to reach the SUN OF
$4,000 900 on the 30th day OF June
next at which date it is expected that this
sum added to prior accumulations will
swell the surplus in the treasury to Sl40,-
100000.
THERE E TO BE NO ASSURANCE
that, with such a withdrawal from use of
the peoples circulating medium, our bust
ness community may not in the near fu-
ture be subjected to the same distress
which was quite lately produced from he
same cause. If such an emergency arises
there seems to be now no clear and I'M
doubted executive mower of relief. Here
tofore relief was afforded by the 3 per
cents, the redemption of which was OPP
uonal with the government.
Continuing, the president says it should
not be forgotten hat premiums must be
paid on the new bonds redeemed, some of
which will be difficult to reach. The sue
cess of the funding plan must be founded
upon the ~volition of the holders of the
present bonds; and it is not entirely Ger
tam that the inducameu which must be
offered them would result in more fnan-
cal benefit to the government than the
purchase of the bonds, while the latter
proposition would reduce the principal of
the debt by actual payment instead of ex-